Business financing simplified

Asset Refinance

Business financing simplified

Asset Refinancing
in a nutshell

Asset refinancing allows lenders to reflect on what equity is available in a certain item (equipment, machinery, vehicles, etc.) that is already owned by the borrower and derive a loan to value (LTV) against the said item. Ideally, you would have an unencumbered asset which would allow for a cleaner transaction however you are still able to refinance an asset if there is existing financing on the asset.

For example, if you purchased equipment on a hire purchase agreement and still have an outstanding balance, you can still raise finance against this (partially owned) asset. The new lender will usually pay off your original lender and give you a lump sum based on the equity you have in the asset.

Some of our lenders

Maximising Cash

Use your existing assets to free up new cash.

BENEFITS

Cost effective

Refinancing assets tend to have better interest rates than unsecured loans.

BENEFITS

Ownership non-essential

You don’t need to own the asset(s) outright.

BENEFITS

Credit flexibility

Because you are borrowing against an asset, your credit doesn’t have to be perfect.

BENEFITS

Who is Eligible?

  • Asset-heavy businesses.
  • All credit profiles.
  • Businesses looking at different revenue avenues.
  • Businesses looking to release cash in the business

How does it work?

1. Select asset: Have an asset to refinance & value how much equity is available.

2. Transaction: The lender will then create a new charge over the asset and you will agree on an interest rate and term to pay the facility over.

3. Payment: Make repayments and exit the lending facility.

How Much Does It Cost?

Because there are a few different types of options – it is tough to give an accurate estimate of cost, especially given the variance of asset quality and business profiles, however a general rule is that refinancing is more expensive than a ‘fresh’ deal via hire purchase. However, the nature of the finance is cheaper than an unsecured loan based on the quality of the security.

FAQ's

The amount you are able to borrow depends on

  • How much the asset is worth.
  • How much equity is available.
  • The loan to value the lender is willing to lend

Yes, a new lender can refinance the asset at a loan to value minus the value of the charge lodged against the collateral.

Whilst your company financials are important, the most important documents will be details of the asset including all information such as serial number, etc.

It depends from lender to lender, but because this financing is predominantly based on the quality of the asset. It is quite common that you can be paid in a matter of days from application.

Qualifing questions

Can I Borrow?

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Get Invoice Finance

Please pop your details in the form below and we’ll get back to you within 24 hours.

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